Obama Calls For Bold Action On Economy

GOP Leaders Tepid To $825B Plan

(CBS/ AP)  Looking beyond expected House approval of his $825 billion economic stimulus plan, President Barack Obama said Wednesday the nation is at a "perilous moment" requiring swift and decisive action.

"We don't have a moment to spare," Mr. Obama said in the East Room of the White House, just hours before a crucial House roll call vote. The measure intended to steady the ricocheting economy was expected to pass, but likely with little of the bipartisan support that Mr. Obama wanted. The issue then goes to the Senate where the new president hopes to draw more GOP backing.

Mr. Obama tempered the sense of urgency in his voice with his observation that he and corporate leaders "left our meeting confident that we can still turn our economy around."

His brief remarks were designed to put his stamp on the debate while the action was taking place at the other end of Pennsylvania Avenue.

During his talk and in the earlier Roosevelt Room session with business CEOs, Mr. Obama said the people running the companies that are the engine of the American economy are behind him. Asked at one point if he was confident of getting Republican support, he replied only: "I'm confident we're going to get it passed."

But while popular perception is that Mr. Obama's plan enjoys wide support among economists, CNET's Declan McCullough writes that there is substantial skepticism in the field about the stimulus package's prospects for success.

There does seem to be one thing most can agree on, though - something needs to be done.

"I think the vast majority of economists on the liberal side, the conservative side, think we do need a stimulus along with other policy steps. But we need stimulus," Mark Zandi, of Moody's Economist, told CBS' The Early Show Wednesday.

Mr. Obama has spent his first days in office trying to drum up bipartisan support for his expensive and expansive plan to help pull the country out of the year-old recession. It's the first major test of Mr. Obama's presidency; how he handles the volatile situation, and the effect of his stimulus package on the economy, could well set the tone for his presidency.

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Read the full text of President Obama's address

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The House measure includes about $550 billion in spending and roughly $275 billion in tax cuts in hopes of spurring the economy and helping those directly affected. Much of the spending would be for items such as health care, jobless benefits, food stamps and other programs that benefit victims of the downturn.

On Capitol Hill, a day of debate on the measure opened with most Democrats pressing for passage and trumpeting the measure as the elixir for what ails their jobless constituents; Republicans generally griped about "insane" programs that would be funded in the plan and "minuscule" tax relief for small businesses as they urged opposition.

"We need to address this economic crisis head on," said Rep. Doris Matsui, D-Calif. "This package is a substantial step forward."

"This package before us is badly flawed," countered Rep. David Dreier, R-Calif., who also lambasted Democrats. "It appears that there is very little focus on the merits and most of the attention is focused on politics," he said.

Republican support ranged mostly from tepid to icy.

House Minority Leader John Boehner wouldn't say how he thought the vote would turn out. He did emphasize anew that GOP members are worried about billions in domestic spending that "has nothing to do with creating jobs or preserving jobs."

"We're for more than just cutting taxes," Boehner, R-Ohio, said on ABC's "Good Morning America."

Senate GOP leader Mitch McConnell of Kentucky told CNN that "where we have differences with the House Democrats is that the package just doesn't seem to reflect our priorities, nor the president's."

McConnell said the proportion of tax cuts versus spending increases in the version being pushed by Democrats has been "crammed down" to about 20 percent of the total instead of the 40 percent envisioned by both Republicans and Mr. Obama.

Congressional leaders have promised Mr. Obama they would send him the measure by mid-February.

In his remarks, Mr. Obama called on everyone - corporate executives and factory floor workers, educators and engineers, health care professionals and elected officials - to abandon a "sense of irresponsibility that prevailed from Wall Street to Washington."

And he said his administration would make certain the money would be spent in full view of the public, with ways to check where it goes and how it will be used - a nod to skepticism about the "size and scale" of the plan.

He left no doubt that he means to see it signed into law, and quickly - and that he thinks those who stand in the way will suffer the wrath of angry voters.

"All we can do, those of us in Washington, is help create a favorable climate in which workers can prosper, businesses can thrive, and our economy can grow," Mr. Obama said. "And that's exactly what I intend to achieve - soon."

[nolalou]

Here''''s a bold action, Obama resign !

Posted by oftencensord

Here''s a better bold action, oftencensord go to hell! Obama won, he reached out his hand to the Republicans and they turned away, not one of them voted for the stimulus plan, even after tax cuts were added, and some of the spending they objected to was removed. If I were the President, I''d say fine, I tried, but from now on, you can just go sit in the corner and pout, we''re going to govern with out you! We won, you lost, screw you!

[jesus_in_pee]

Here''''s a bold action, Obama resign !

Posted by oftencensord at 08:03 AM : Jan 29, 2009

Ha ha! You really are living a fantasy land. I''ll bet you think that you''re smart and handsome too.

[jesus_in_pee]

Republican don''t want to support anything that may help. Like their patron saint Rush Limbaugh, they want President Obama and the nation to fail. When things do turn around, President Obama and the Democratic Party will deservedly receive all the credit.

"OK, I''ll send you a response, but I don''t need 400 words. I need four: I hope he [President Obama] fails."
Rush Limbaugh
http://mediamatters.org/items/200901280001

[bluenomas]

oh yes...on Bush''''s watch...how lucky was that, huh? Except now it''''s on Obama and the Dems to pull it off knowing the Republicans have NO VOICE TO STOP THEM. Sounds good until the ship starts sinking.
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Posted by likeitis5050 at 08:11 PM : Jan 28, 2009

Oh yes, let%u2019s point the finger at Democrats yielding almighty power to the Freddie Macs and Fannie Mae%u2019s on our dilemma now. That most certainly is the crux of our crisis now. And if that is true, how is it that the ever-so insightful Bush regime didn%u2019t snip that threat to our society in the bud and protect us from this obvious catastrophe? Lucky? Bush%u2019s watch? Eight years%u2026? He watched something%u2026? Hmmm%u2026what was that? What exactly did he watch? He didn%u2019t even know what was hitting him - much less the country he was %u201Cprotecting%u201D. The Republicans were steadfast in doing NOTHING and that is REALITY.
Oh yeah, and too bad we can%u2019t credit economic growth due to the Iraqi War like WWII after the depression. Sorry that%u2019s just another huge debt we can thank W and his Republican regime for. Perhaps if we had the 3 trillion thrown away on this bogus war this nation wouldn%u2019t be in frolicking in this quagmire. Get real.

[the74blaster]

Democrats...inspite of warnings from Republicans.

Posted by likeitis5050 at 08:11 PM : Jan 28, 2009,

BS. Are you telling us that the Wall Street Investment banks who were driving up the price of gasoline to $ 4.30 per gallon because your republican here refused to regulate them has nothing to do with the economic meltdown? You need to to listening to the conservative blowhards and open up your eyes.

The fact is driving up the price of fuel by 300% consumed the disposable income of many of us and took it out of the economy. As a result the economy contracted and jobs were lost further aggrevating the mortgage meltdown you cite.

By the way, can you name a single democrat who forced a bank to write a mortgage to someone who could not afford it? The banks made a business decision to write the loan pure and simple. Please name a democrat who held a gun to a bankers head and forced him to write a loan to an unqualified applicant?

The fact is this is just another conservative lie! There is not a single bank who is going to write a high risk loan unless they can turn a profit from it. The unregulated speculation in fuel is root cause of this mess and it happened on Bushs watch.

That is a fair representation of the facts!

[likeitis5050]

The republicans have stood steadfast to do nothing. We don''''''''t need any more slackers in Congress. The American people need to get rid of these republicans who want to sit on their fat ***** and suck on the public **.. This country needs to remember who pulled us out of the 1929 depression and who answered the call to arms on Dec. 8, 1941.

Posted by williamayer

Wow...for someone who apparently won in the election...why so angry? Could it be because you''re basically stupid? WWII pulled the economy out of the Depression...not the spend-our-way-out-of-debt plan of the The New Deal. But I''m not upset that YOU don''t know that...however Pelosi, Reid, Frank and Obama SHOULD KNOW...we elect people who are supposed to have LEARNED FROM HISTORY.

You can pizz and moan all you want about the Republicans but once you get off your azz and stop listening to Chris Matthews talk about his ''tingly feelings'' Obama stirs in him you learn that the sub-prime home loans that caused every thing to go belly up were birthed by none other than the Democrats...inspite of warnings from Republicans. It''s their love child...so they are doing everything they can to hide the fact that they created this mess...oh yes...on Bush''s watch...how lucky was that, huh? Except now it''s on Obama and the Dems to pull it off knowing the Republicans have NO VOICE TO STOP THEM. Sounds good until the ship starts sinking.

[n2trophies]

My suggestion is to create jobs;cut pollution; make safer hiways; move fraight faster and save money. A 300 MPH above ground monorail would do the trick. If you expect the common driver to accept an electric car that will traivle 60 miles at 60 MPH before recharging is a dream that will only work if we rethink travle.

[n2trophies]

My suggestion is to create jobs;cut pollution; make safer hiways; move fraight faster and save money. A 300 MPH above ground monorail would do the trick. If you expect the common driver to accept an electric car that will traivle 60 miles at 60 MPH before recharging is a dream that will only work if we rethink travle.

[dennisgreen5]

The republicans have stood steadfast to do nothing. We don''t need any more slackers in Congress. The American people need to get rid of these republicans who want to sit on their fat ***** and suck on the public ***. President Obama has the support of the majority of Americans who want something done to help our people. By our people I mean the middle class workers, not Wall Street investors or bankers or Detroit executives of the auto industry. This country needs to remember who pulled us out of the 1929 depression and who answered the call to arms on Dec. 8, 1941.

[n2trophies]

I feel that to put us in small cars would be o.k. if we had a mastransit system to compensate for the lack of mobility. I suggest an above ground monorail system.You create jobs; cut polution; maks highways safer;and move more fraight for less.

[libra217]

There are currently 305,702,426 people living in the US according to the latest census.
Now take 1 of the 875 billion and split it in half.
Give every man woman and child 1,000,000 dollars each.

Posted by williamayer at 07:19 PM : Jan 28, 2009

Uh, you''re a bit math-challenged. 500 million dollars provides each US resident with $1.63, not a million dollars. Try again.

[erasmus606]

That when you walk into the wall with an erection and break your nose first.

Posted by demswin08 at 07:15 PM : Jan 28, 2009

I don''t have nothing to have an erection with.

[spaceatoms]

I would like a web cam in every house controlled by the feds, selective interest rates, 0 percent Europe and China, 30 percent for U.S. residents; new bankruptcy laws that allow multiple bankruptcies and you subtract one for each child for an equivalence bankruptcy, and a college hedge fund for corrupt college students to borrow against but not pay back, all WWII carriers turned into Caribbean cruise liners if with discounts for the eldery and library taxes of up to 30 percent. Its very complex out there so don''t panic and pass another stimulus package.

[mrzerato]

850 billion road to bankruptcy

Posted by popstom121


Hmm under bush and the republicans , they spent us into bankruptcy, adding 6 trillion to the national debt

[libra217]

Hay it''s winter no construction for more then half
country no stimulus there

Posted by popstom121 at 07:08 PM : Jan 28, 2009

Engineers, planners, managers, materials buyers, etc. have to be hired and do some work before construction can actually start. The weather is not a problem.

[mrzerato]

good exempt those Republican district in collecting that $2,700.00 in taxes from them too in the future.

Posted by hclinton2012

nah that wouldn''t be any good. They should have better representation

[erasmus606]

LOL! So you WANT us to have a president who plays with coloring books and crayons????

Posted by repo_man_08 at 07:02 PM : Jan 28, 2009

And what''s the matter with coloring? I color all the time. Of course I color in adult coloring books and use pencil crayons.

That''s why I am so good natured and relaxed all the time.:)

[libra217]

.a mad rush by Sprint employees laid off in the thousands...to be first in line to start repairing the bridges and roads

Posted by likeitis5050 at 06:55 PM : Jan 28, 2009

I never implied this and you know it. The stimulus package provides spending in a wide variety of categories -- much more than building roads and bridges. Check it out. No one assumes that laid-off workers will simply get their old jobs back.

It''s so easy to criticize someone elses plan. How about providing some creative proposals of your own for saving the economy from imploding if you don''t like the plan on the table.

[McHineguy]

Soory about your luck but the senate is fillabuster proof with 59 seated democrats and 2 indpendants of which one will vote party lines.


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Posted by demswin08 at 06:57 PM : Jan 28, 2009

Why does this have to be a bipartisan problem? Do you really think the plan as decribed (its available for reading) is going to help you? Just because its your party doesnt mean its good for you. we arent Crips and Bloods, we are americans trying to save a sinking boat by borrowing money and spending it wisely.

[McHineguy]

I don''''t think it''''s such a small percentage, although the details haven''''t been made public yet. Alot of the spending opponents like to call "pork" are actually infrastructure-like projects where workers can immediately be hired. And it''''s not only jobs for construction workers that are need. White-collar jobs like architects, engineers, planners, designers, safety personnel, etc. are needed too.


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Posted by libra217 at 06:50 PM : Jan 28, 2009

The results have been posted. There is about $100B for infrastructure and $750B for other things. Including an outright earmark for "community organizations" (read ACORN). So, all infrastructure together makes up about 13% of the plan. Check it out:

http://www.cbsnews.com/blogs/2009/01/28/politics/politicalhotsheet/entry4760660.shtml